“Be Greedy When Others Are Fearful And Fearful When Others Are Greedy”

Posted by Shawna Ebersole | Categories: Buyers, Real Estate Investing

Wow!  What great advice!  And it comes from none other than Mr. Warren Buffet!  Yes, Mr. Buffet says that now is the time to buy your piece of the American pie.

Sure, there’s a crisis going on and many are not going to be able to get a mortgage right now.  But for those of you that have been good with your money and have protected your credit, now is your time to take advantage of this crazy situation we’ve found ourselves in.

No matter what you’re looking at to buy right now, whether it be clothes, or a car or what have you, good deals are all around us.  But when we bring it specifically to the world of real estate, the deals that can be had right now are on a much grander scale.

If you’re a “Move Up Buyer” and looking to get into “that” neighborhood….now is the time to do it!  Go ahead, take a hit on the sale of your home, but take advantage of the hit that the seller of “that” home is having to take.

For example, if you’re taking a 10% hit on the sale of your home, how does that help you buy another one?  Well, a $100,000 home minus 10% is now going to sell for $90,000.  Ouch! That doesn’t feel good! 

But look, a 10% hit on a $200,000 home means you can now buy your next home for $180,000.  You lose $10,000 on the sale of your current home, but gain $20,000 on the purchase of your next home.  At the end of the day, that still puts you ahead by $10,000!

Or…maybe you don’t have any desire to move right now.  Fine.  Stay in your current home, but take advantage of this mortgage crisis and buy bargain homes and hold on to them as rental properties.  Because people are going to have a harder time getting approved for mortgages right now, it means that the rental market is going to be in even greater demand.

Bottom line – if you’ve been good with your money and have protected your credit along the way, now is the time to reward yourself…Go For It!

This entry was posted on Friday, October 17th, 2008 at 4:55 am and is filed under Buyers, Real Estate Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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